TotalEnergies Redirects $928M from US Offshore Wind to Rio Grande LNG Plant
TotalEnergies and the US Interior Department signed an agreement to redirect $928 million from two offshore wind lease deposits off the North Carolina and New York coasts into the Rio Grande LNG expansion. The deal formally cancels TotalEnergies’ 4 GW of US offshore wind projects and includes a 20-year LNG offtake LOI for 2 million tons annually.
1. Deal Overview
TotalEnergies CEO Patrick Pouyanne and US Interior Secretary Doug Burgum signed an agreement in Houston to cancel the company’s two US offshore wind leases and reallocate $928 million of lease deposits to fossil fuel projects. The funding shift, valued at nearly $1 billion, was highlighted as a partnership to prioritize cost-competitive energy investment.
2. Offshore Wind Portfolio Impact
The agreement terminates TotalEnergies’ development of 4 GW of offshore wind capacity—3 GW in the New York Bight and 1 GW off North Carolina—that had been on hold since 2024 due to licensing hurdles. The move represents a strategic pivot away from weather-dependent power towards natural gas assets.
3. LNG Redirect and Long-Term Offtake
Redirected capital will support the Rio Grande LNG plant expansion, while TotalEnergies also signed a letter of intent with Glenfarne for a 20-year, 2 million-ton-per-year LNG offtake from the Alaska LNG project. This repurposing underscores the company’s focus on bolstering its US natural gas footprint.